Results from the June 2025 NMHC Quarterly Survey of Apartment Construction & Development Activity indicate mixed market conditions currently but greater optimism over the longer term.
Results from the June 2025 CQS emphasize a much-improved environment for construction delays, with fewer than half of all respondents reporting delays in either permitting or starts over the last three months. And while potential headwinds remain—respondents say they anticipate increasing construction costs along with less available labor and materials over the coming year—respondents also remain optimistic in their longer-term market outlook, with more than half (55%) expecting overall conditions to improve in 6-12 months.
“While the June survey results indicate improving conditions for multifamily construction—respondents reported greater availability of construction labor compared to three months ago and fewer overall delays—we also know that far fewer projects are being started to begin with,” noted NMHC Economist and Senior Director of Research, Chris Bruen. “A combination of economic uncertainty, high interest rates and increasing construction costs caused multifamily starts to fall 35.1% between 1Q 2024 and 1Q 2025, according to data from CoStar, and a majority of June survey respondents anticipate that multifamily construction costs will increase even further over the next 6-12 months.”
Forty-three percent of respondents reported experiencing construction delays over the last three months, down from 58% in March, 78% in December and 52% in September. This marks the lowest level of reported delays since the survey began and the first time that the share of respondents has fallen below 50%.
Regarding market conditions, the share of respondents who reported deals repriced down decreased to 34% (from 50% in March), while those reporting deals repriced up increased to 38% (up from 25% in March).
Respondents reported mixed labor market conditions, although with more signs of loosening compared to last quarter. Fifty-one percent of respondents reported construction labor availability to be roughly the same as three months ago (from 50% in March).
New This Quarter: We've included index numbers that indicate whether respondents believe various construction conditions will improve (values above 50), worsen (below 50) or remain the same over the coming year.
When it came to short-term expectations, a market conditions index value of 47—below the breakeven level of 50—reflects expectations that overall market conditions will decline over the next three months. However, an overall market index value of 52 for the medium term and 71 for the long term suggests that respondents are more optimistic about overall market conditions over the longer term, as was the case in the previous four quarters.
Construction Indicators 2Q 2025 (% of Respondents)
- 43% Experienced Construction Delays
- 72% Saw Deals Repriced
- 11% Reported Labor Less Available
- 32% reported Labor More Available
- 26% Experienced Materials Delays
Based in Washington, D.C., the National Multifamily Housing Council (NMHC) is where rental housers and suppliers come together to help meet America’s housing needs by creating inclusive and resilient communities where people build their lives. We bring together the owners, managers, developers and suppliers who provide rental homes for 40 million Americans from every walk of life—including seniors, teachers, firefighters, healthcare workers, families with children and many others. NMHC provides a forum for leadership and advocacy that promotes thriving rental housing communities for all. For more information, contact NMHC at (202) 974-2300, email the Council, or visit NMHC's website at nmhc.org.
